David Ristau
Growth at reasonable price, research analyst, newsletter provider, long/short equity

KongZhong Heading Higher Due To Mobile And International Growth

KongZhong Corp. (KONG) is a small player in the giant world of online gaming. We maintained a positive view on the company's prospects in our July report, but believed KONG was fairly valued at the time. Since then, the company has announced several promising updates to its pipeline that we believe will enhance earnings moving forward. Additionally, mobile is playing an increasingly larger role, as KongZhong looks to reach an international audience with new smartphone games. We have upgraded our view on KongZhong to Buy as a result and raise our price target for the next 12 months to $14.

Industry Overview

Two markets are key to the success of KONG, namely the online and mobile gaming markets, as both...

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